United Parks & Resorts Inc. — Third Quarter and First Nine Months 2026 Earnings Summary

Financial Performance:

• Total revenue for the third quarter of 2026 was $506.5 million, a 1.1% decrease from $511.9 million in the same period in 2025.
• Net income for the third quarter of 2026 was $80.0 million, a 10.5% decrease from $89.3 million in the prior year quarter.
• Adjusted EBITDA for the third quarter of 2026 was $205.1 million, a 5.1% decrease from $216.3 million in the prior year quarter.
• Net cash provided by operating activities for the third quarter of 2026 was $93.2 million, a 1.7% decrease from $94.8 million in the prior year quarter.
• Total revenue for the first nine months of 2026 was $1,268.1 million, a 1.6% decrease from $1,289.0 million in the same period in 2025.
• Net income for the first nine months of 2026 was $109.2 million, a 28.8% decrease from $153.3 million in the prior year period.
• Adjusted EBITDA for the first nine months of 2026 was $458.6 million, a 6.4% decrease from $490.0 million in the prior year period.
• Net cash provided by operating activities for the first nine months of 2026 was $330.0 million, a 9.4% increase from $301.7 million in the prior year period.
• Diluted net earnings per share for the third quarter of 2026 were $1.74, an 8.1% increase from $1.61 in the prior year quarter.
• Diluted net earnings per share for the first nine months of 2026 were $2.29, a 17.0% decrease from $2.76 in the prior year period.
• Capital expenditures for the first nine months of 2026 were $207.9 million, a 24.3% increase from $167.2 million in the prior year period.
• Free cash flow for the third quarter of 2026 was $23.5 million, a 38.3% decrease from $38.0 million in the prior year quarter.
• Free cash flow for the first nine months of 2026 was $122.1 million, a 9.2% decrease from $134.5 million in the prior year period.
• Deferred revenue as of September 30, 2026, was $152.4 million, compared to $143.3 million as of December 31, 2025.
• Total long-term debt, including current maturities, was $2,276.5 million as of September 30, 2026, compared to $2,248.0 million as of December 31, 2025.
• Selling, general and administrative expenses increased 13.1% to $68.6 million in the third quarter of 2026 from $60.7 million in the prior year quarter.
• Selling, general and administrative expenses increased 8.3% to $183.3 million in the first nine months of 2026 from $169.2 million in the prior year period.

Guidance and Future Outlook:

• Management projects a clear path to deliver significantly higher attendance, revenue, Adjusted EBITDA, and free cash flow in 2027 and beyond.
• Forward bookings for Discovery Cove and the group business for 2027 are running up double-digit percentages versus the prior year.
• Total pass sales increased almost 8% during the third quarter of 2026.
• The total paid pass base was positive as of October 31, 2026.
• The 2027 specific pass product base was up over 15% as of October 31, 2026.
• Management anticipates total revenue for October 2026 to be up despite continued weather challenges.
• The company plans to launch a new holiday event lineup featuring popular rides, attractions, and immersive exhibits alongside new and improved elements.

Business Segments and Product Lines:

• SeaWorld Orlando will debut a new attraction, "SEAQuest: Legends of the Deep," in 2027.
• Busch Gardens Williamsburg will debut "Return to Corkscrew Hill," a motion theater ride, in 2027.
• Busch Gardens Tampa Bay is scheduled to announce an upcoming attraction at the IAAPA Conference.
• Admission per capita increased 3.4% to $40.90 in the third quarter of 2026 and 0.5% to $41.68 in the first nine months of 2026.
• In-park per capita spending increased 4.4% to a record $37.39 in the third quarter of 2026 and 4.8% to a record $38.86 in the first nine months of 2026.
• Total revenue per capita increased 3.8% to $78.29 in the third quarter of 2026 and 2.6% to $80.54 in the first nine months of 2026.

Market and Competitive Landscape:

• Attendance decreased 4.7% to 6.5 million guests in the third quarter of 2026 and 4.1% to 15.7 million guests in the first nine months of 2026.
• The decline in attendance was primarily attributed to unfavorable weather, calendar impacts, and a decline in international visitation.
• A planned reduction in promotional admissions products contributed to a decrease in attendance, amounting to more than 100,000 visits in the third quarter.
• Excluding unusual headwinds (weather, calendar, international) and promotional reductions, management estimates attendance would have been up.
• The company operates 13 parks across seven markets in the United States and Abu Dhabi under brands including SeaWorld, Busch Gardens, Discovery Cove, Sesame Place, Water Country USA, Adventure Island, and Aquatica.

Risks and Challenges:

• Unfavorable weather and international headwinds significantly impacted attendance and revenue in the third quarter.
• Operating expenses, including selling, general and administrative costs, increased, negatively impacting Adjusted EBITDA.
• The company faces risks related to weather, natural disasters, labor shortages, inflationary pressures, and supply chain delays.
• Regulatory risks include complex federal and state regulations governing animal treatment and potential claims by activist groups.
• The company has a high fixed cost structure and is subject to seasonal fluctuations in operating results.
• Debt agreements contain covenants that limit flexibility in operating the business.

Management Commentary and Tone:

• CEO Marc Swanson expressed pleasure with the underlying performance of the business despite significant headwinds.
• Management highlighted continued strong in-park execution and improved admissions product pricing and management.
• Swanson noted significant opportunities to improve execution and progress across key initiatives.
• Management remains focused, well-positioned, and highly confident in the ability to significantly grow the business and deliver value for shareholders.
• The company thanked ambassadors for their dedication during the summer and Halloween seasons.

Other Key Points:

• During the third quarter of 2026, the company came to the aid of 237 animals in need in the wild.
• The company has helped more than 43,000 animals over its history and is one of the largest marine animal rescue organizations in the world.
• The company will hold a conference call on November 5, 2026, at 9 a.m. Eastern Time to discuss results.
• The company's debt agreements include specific adjustments for Covenant Adjusted EBITDA, including estimated cost savings and other permitted adjustments.
• Capital expenditures were split between core maintenance ($175.3 million) and expansion/ROI projects ($32.6 million) for the first nine months of 2026.